My market guru has a blind spot.  Yes, we all do; we hope our outstanding qualities make-up for these deficiencies.  Unfortunately, Jim Cramer still can’t sell a wrong-headed, wrong-way, stock.  First there was Halliburton.  The feeling of the times?  Company is/was selfish and corrupt supported by a President, or at least, Vice President.  No one would touch it.  Cramer held on and held on and held on.

Then there was BAC.  It doubled  and then began to drop.  REMEMBERING, Halliburton, I watched it drop and then sold.  Not CRAMER. Over a year later, he did dump it. Even more recently, Alcoa was  the same story repeated. Even though, years ago, he taught me to ignore Alcoa.  “it always misses, even in good times.”  He didn’t listen to this voice and bought and bought and lost and lost.

But there is a corollary to this approach.  If and when you see this  clinging-to-a-loser….  We all know about clinging-to-a-loser (position, person, spouse, friend, etc) ………..  When Cramer gives up the GHOST after a year or more of recommending, (reiterating the ‘good story’ of  a stock postiion and continues to buy and it just gets worse and worse) and finally the position has a HUGE loss, Cramer finally gives up and sells.  NOW it is time to BUY BUY BUY!  It will be the bottom.  It will be a great trade.  Sadly, this is a lesson I learned the expensive way.  See my Alcoa trade with him.

Once he sold BAC and Alcoa, they have made remarkable money going up.

No one better on the upside but his never-give-up style, if he thinks THE “story” is intact, REGARDLESS of the action, the community sentiment, or the headlines, is a bone crusher.